Eastinco Mining and Exploration Plc [LON:ATN], the exploration and development company focussed on strategic metals in Africa, became London’s newest-listed company, as it was admitted to trading at 08:00 this morning (24th October).
The company raised GBP850,000 through the issue of 85,405,000 shares at 1p from a 964,694,093 total ordinary share capital.
Placing agents were Novum Securities Limited. Net proceeds after settlement of broking and advisory costs were GBP741,550.
Eastinco will be changing its name to Aterian plc, and Eastinco’s share were withdrawn from the Aquis Growth exchange in London (AQSE Growth Market).
Additionally, the company reported that it had closed a GBP500,000 working capital debt facility, provided by a trust associated with Charles Bray, the company’s chairman. Post-admission Eastinco will have 964,694,093 Ordinary Shares in issue.
The company acquired Aterian Resources Limited, an indirect subsidiary of Elemental Altus Royalties Corp, a TSX Venture Exchange listed company prior to listing and with it, copper-silver and base metals projects in Morocco.
The new Moroccan assets complement Eastinco’s existing operations in Rwanda, the Kuka Mine, a tantalum project near Lake Kivu, and the Huye Project, a tin, tungsten and tantalum 50/50 joint venture with Dynasty Construction company in the south of the country.
On admission, Elemental Altus Royalties became Eastinco’s largest shareholder, holding 25% of the issued share capital, with Alister Masterton-Hume, joining the board from Elemental Altus.
In its last results to end-June 2022 Eastinco reported a loss of GBP237,000 for 1H22. At the time Bray said that the losses were a result of increased administrative costs, relating to expenditure on overheads, operational and exploration costs, and legal and professional expenses primarily related to the proposed transaction to acquire Aterian’s Morocco and the proposed move to the Standard List of the London Stock Exchange.
Aterian to focus on energy transition
The new Aterian company’s focus is the energy transition, and its Rwandan and Moroccan projects are focussed on providing metals for batteries and transmission and is operating in two of Africa’s easiest to operate jurisdictions. In a statement the company said: “The Company provides investors with an opportunity to invest in Africa and specifically the critical and strategic minerals space, which the Company believes will grow over the coming decades owing to the development of the renewable energy, automotive and electronics manufacturing industries.”
Kasra Rezeshki, the CIO of Britishvolt Limited, the West Midlands-based battery manufacturer that is currently building a battery manufacturing facility in Northumbria, joined the board as non-executive director.
The company will use the proceeds of the listing to further its Moroccan and Rwandan exploration activities, for administrative costs and for working capital as well as to develop its metals trading business in Rwanda.
Bray said in a statement: “We are excited to develop and explore in Africa’s most business-friendly countries, focusing on metals that are essential to realising key strategic objectives for the green economy, as well as global health and international security. We look forward to applying the proceeds of the fundraise to the exploration of our portfolio of assets with the aim of creating and realising long-term value for the company’s shareholders.”
Within the first hour-and-a-half of trading Eastinco’s shares were priced at 1.1p.
